Final audited results for the year ended 31 December 2022

Projects delivery delays impact performance, business transformation accelerates.

Financial headlines  

·      Group revenue was £91.0m, down 12.4% (2021: £103.9m) with recurring revenue at 77% (2021: 69%).

·      Revenue declined due to a number of contributing factors, including supply chain issues surrounding semi-conductor hardware in Q4 2021, delays in public-sector tenders, lower revenue from large scale projects and £0.5 non-repeating revenue due to the sale of Document Solution division in FY21.

·      Recurring revenue increased from 69.2% to 77.0%, due to pandemic having a positive customer effect in accelerating change of technology, with transitioning to cloud services.

·      Cloud and software revenues increased as a proportion of total Group revenue to 44% (2021: 34%)

·      Adjusted EBITDA fell by 54.6.% flowing from revenue decreases of 12.4%, delivering a disappointing group Adjusted EBITDA[1]  of £4.4m (2021: £9.6m).

·   Gross profit decreased to £27.9m (2021: £34.1m) with gross margin decreasing to 30.6% (2021: 32.8%) mainly due to the lower level of rebates as hardware and software resell revenue decreased.

·    The Adjusted Profit Before Tax[5] fell to £1.6m from £6.8m in FY21, mainly due to shortfall in revenue.

·     The business significantly reduced year-end net debt[4] to £16.6m, (2021: £19.4m)

·     Adjusted loss per share[2]  at 1.6p, a decrease of 105% (2021: earnings per share at 33.2p)

·     Basic loss per share at 30.4p (2021: earnings per share at 32.5p)

·     Cash conversion[3] of 245%  of adjusted EBITDA[1] (2021: 48%)

Operational highlights

·    Major new and existing customer contract awards exceeding £50m total contract value (TCV), based on new solution offerings implemented at the end of 2019 and start of 2020.

·     Transformation to a cloud and managed services business continued at pace, delivering a 27.3% increase in contracted cloud seats with 168,000 at the year-end (2021: 132,000).

·     ESG strategy strengthened with strategic benefits to Group including a sustainable future, tender compliance, banking compliance and supporting shareholder value.

·    Maintel entered a 3-year refinance agreement with HSBC for a £26m Sustainability linked loan facility at improved terms.

·     Gabriel ('Gab') Pirona was appointed Chief Financial Officer, effective from 2 May 2022, bringing valuable experience into the Group. Gab has helped deliver significant operational improvements.

·   Carol Thompson appointed Executive Chairman from 1 November 2022 and charged with initiating a strategic and operational review.

Post period end

·    Resignation of Ioan MacRae as CEO on 28 February 2023, Carol Thompson's Executive Chairman's role was extended to cover the function of Interim Chief Executive Officer.

·    Strategic, organisational and operational review completed in Q1 FY23 led to the implementation of a plan to transform the business, focusing growth on higher margin product lines, adapting the delivery and support organisations to crystallise substantial cost savings while creating a scalable cost base to support future growth.

·    Trading to date in FY23: revenue, EBITDA and orders are all in line with management expectations.


·     The primary impact on the business of Covid 19 was the well documented supply chain disruption.

·     We continue to see the hardware supply chain issues alleviate, with significantly reduced lead times on most key product lines and therefore an acceleration in our ability to deliver the projects in our order book. Some items do remain constrained, and we continue to monitor the situation closely.

·      Indirect impacts on bid to bill cycles have been twofold, especially in the Public Sector. Changes to access and communication processes creating slower bid-to-sign timelines and then delayed project implementation due to restrictions to on-site access. Whilst a challenge for 2022, the business has entered 2023 with a very substantial forward WIP position.

·      Having embraced hybrid working, the business is now looking at post pandemic working patterns to balance service to clients with staff health and wellbeing agenda.

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